Pros/Cons of one larger contract vs 2 smaller ones?

[Rebd40]

I'd like to hear the pros/cons of having a single contract with more points vs. having 2 (or more) contracts with fewer points.

Here's my situation - I've pretty much decided what resort, number of points and use year that I want - SSR/270 pts/Oct Use year. I've also decided to purchase from Disney and am planning to call on Tuesday to finalize the deal.

But I haven't made up my mind if I would be better off purchasing a single contract of 270 points or purchasing a contract of 150 then purchasing another one of a 120 pts. One reason I was thinking of doing the latter is to minimize future risk - if my needs changed and I didn't need all 270 pts, I would then have the option of selling one of the contracts and still maintain my DVC membership.

Sooooo . . . what do you think?

 

[LIFERBABE]

Once I met my original 150 point purchase requirement, I have split all add-ons up.

Smaller contracts are easier to sell, because a buyer can purchase resale for less than what DVC would require them to spend.

Smaller contracts also sell for closer to the going rate than larger contracts. If you look at the resale sites, you will see the difference in price listings from small to large total about $3-$5 ppt.

As you stated, you can decide to sell one of your contracts and still be a DVC Member.

The downpayment is the same when you split up your contracts so besides having to complete 2 sets of paperwork, it is pretty painless.
Member Services can see all your contracts when you call to book a ressie so it is seamless to book ressies.

I would say go for it

 

[CapeCodFam]

I agree with Liferbabe completely. Also, unless I'm mistaken, there is an incentive going on right now for 120 pt add-ons. Two smaller contracts may come with more freebies. I'd say check with your guide for details.

 

[utahkennedys]

I totally agree with the other posters that smaller contracts are easier to sell. I have been watching several resale agencies for a while now, and the larger contracts (even 150 point contracts) don't seem to move too quickly.

 

[Deb & Bill]

Plus if you ever want to give away the contracts to your kids or other family members, you can't split them up yourself. They have to stay intact. We got our first contract of 175 pts, the next 75, next 50, and then 2-100 pt contracts at other resorts. We only have one son, so he'll get them all if we don't last until 2042. But we could sell off the smaller ones if we choose. Those go pretty quickly on the resale market.

 

[JimC]

I really don't see any advantage to a single large contract. Smaller contracts give you more flexibility if you want to adjust your holdings sometime or pass on to kids. They are also easier to sell. I guess the small drawback is increased closing costs if you buy multiple small contracts, but I suspect the additional cost to be minimal unless you are buying contracts smaller than 100 points. If buying direct from Disney you might qualify for more incentives with multiple contracts, but I am uncertain on this.

Given your situation I would go with 150 and 120.

 

[Rebd40]

Thanks for the quick feedback. I will proceed as planned. I definitely will check into any possible add-on incentives, too.

Well, wish me luck. I will finally be a member of the DVC family!

P.S. I have to say that I feel really good about purchasing into DVC. A large part of the credit goes to all of the folks, like you, on these DIS forums, for helping me make the best decision that fits my needs.

Thanks a bunch!

 

[Dean]

Absolutely no benefit from the larger contract. For 270, I'd also do a 150 then add on 120 to get the incentive.

 

[DrTomorrow]

Absolutely no benefit from the larger contract. For 270, I'd also do a 150 then add on 120 to get the incentive.

Bzzzt. Wrong. While I agree with the 150 + 120 suggestions, there are small benefits in a single larger contract. Simplicity in tracking/banking, less purchasing effort, easier to organize. Not enough to outweigh the current incentive (if we were purchasing now, I'd do 150 + 150 at SSR), but to say "no benefit" ain't right.

 

[JimC]

Bzzzt. Wrong. While I agree with the 150 + 120 suggestions, there are small benefits in a single larger contract. Simplicity in tracking/banking, less purchasing effort, easier to organize. Not enough to outweigh the current incentive (if we were purchasing now, I'd do 150 + 150 at SSR), but to say "no benefit" ain't right.

Not sure I understand how multiple contracts affect the items you mention. I have multiple contracts at each resort I own at. I treat them as a single contract when I manage them. The only time the different contracts become an issue is if you sell one (for allocation of point status).

I do agree that it is less effort to purchase one as opposed to two, but it is a minimal additional effort.

 

[bethyg]

Stupid question........ would you have to pay twice the monthly maintenance fees (in other words....2 contracts = 2 separate maintenance fees)? That amount of $$$ could add up quickly through the years. Are the maintenance fees based upon # of points owned or just being an owner in general. Potential DVC owner here wanting more info.

Thanks!

 

[wdeversole]

Maintenance fees are calculated on number of points owned. Would be the same for a 270 point contract as one 150 and one 120 pt contract.

 

[Dean]

Bzzzt. Wrong. While I agree with the 150 + 120 suggestions, there are small benefits in a single larger contract. Simplicity in tracking/banking, less purchasing effort, easier to organize. Not enough to outweigh the current incentive (if we were purchasing now, I'd do 150 + 150 at SSR), but to say "no benefit" ain't right.

IF they are the same resort and use year and under the same master contract, you get all those benefits also. OF course if you were talking other use years or different resorts, that would be the case.

 

[BCVOwner2002]

I agree wtih others that if you are buying the same location and UY you might as well buy smaller contracts. If you ever decide to sell you would be able to sell just a portion rather than the whole contract. I wish I did this with my first contract but I purchased before I found the Disboards with its wealth of knowledgeable people! Annmarie

 

[NJOYURLIFE]

So, if you have a larger point contract, say 500 points, you are essentially stuck with the larger point contract? There is no way to split it up? What is you want to leave 250 points to one child and 250 to another?

Lisa

 

[SueM in MN]

So, if you have a larger point contract, say 500 points, you are essentially stuck with the larger point contract? There is no way to split it up? What is you want to leave 250 points to one child and 250 to another?

Lisa

you can't split it.
It is a real estate transaction. Just like you can't split off your bedrooms and sell them separately from your kitchen and living room, you can't sell your portion of a DVC contract.

 

[JimC]

So, if you have a larger point contract, say 500 points, you are essentially stuck with the larger point contract? There is no way to split it up? What is you want to leave 250 points to one child and 250 to another?

Lisa

No way to split it up. You would need to leave the contract to both or buy a second contract for the other.